1. S&S Tech Q2 Earnings: A Mixed Bag

S&S Tech reported KRW 60.6 billion in revenue (a 33.1% decrease YoY) and KRW 13.2 billion in operating profit (a 14.6% decrease YoY) for Q2 2025. Both figures slightly beat market consensus, but net income fell short at KRW 10 billion. While the decline in blank mask sales impacted performance, the company’s efforts to control costs and maintain profitability are positive.

2. EUV Investment: The Future Growth Engine

S&S Tech is heavily investing in the development and mass production of EUV blank masks and pellicles. This technology is crucial for next-generation semiconductor production and is expected to be a long-term growth driver. The expansion of the AI semiconductor market is also a positive factor.

3. Investment Strategy: Opportunities and Risks

S&S Tech has high growth potential, but investors should be aware of risks such as the company’s sensitivity to the semiconductor industry cycle, intensifying competition, and high R&D investment. Consider the following:

  • • Closely monitor EUV commercialization progress and R&D investment efficiency.
  • • Evaluate the company’s strategy for collaboration within the semiconductor industry and securing new customers.
  • • Assess the performance of subsidiaries and ensure sound financial health.
  • • Monitor macroeconomic factors such as global economic conditions, exchange rates, and raw material price fluctuations.

4. Conclusion: A Cautious Approach is Necessary

S&S Tech is laying the groundwork for future growth through its investments in EUV technology. However, a cautious investment approach is warranted given the weaker-than-expected net income and uncertainties in the semiconductor industry. Investors should diligently monitor technological developments and market trends to identify opportune investment timings.